Germany’s Deutsche Bank, Commerzbank halt merger talks
BERLIN (AP) — Deutsche Bank and Commerzbank said Thursday it is halting talks on a possible merger that would have created Germany’s biggest financial institution but faced questions about costs and job losses.
Deutsche Bank said in a statement that “after careful analysis” its management board has concluded that a combination with its rival “would not have created sufficient benefits to offset the additional execution risks, restructuring costs and capital requirements associated with such a large-scale integration.”
“The two banks have decided to discontinue discussions,” it said.
The major German lenders announced March 17 they would discuss a merger. The country’s finance minister reportedly favored the move, but there was widespread skepticism about the merits of merging two companies overhauling their businesses after years of troubles, as well as concerns about the possibility of large-scale job losses.
Separately, Deutsche Bank said it expects to report on Friday that its first-quarter net income was about 200 million euros ($224.2 million) and net revenue 6.4 billion euros.